Air Products Awarded a Hydrogen Supply Agreement in Texas

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Aug 08, 2011, 11:00 ET

LEHIGH VALLEY, Pa., Aug. 8, 2011 /PRNewswire/ -- Air Products (NYSE: APD), the leading global hydrogen provider, today announced a long-term agreement with Shell Oil Company for the supply of a significant portion of the hydrogen requirements at Shell's Deer Park, Texas refinery. The hydrogen supply will commence in mid-2013. The Deer Park facility will be connected to Air Products' industry-leading Gulf Coast hydrogen pipeline supply network that serves multiple refinery and petrochemical companies in the region.

"We are pleased to be selected to supply Shell's hydrogen need at Deer Park. The structure of this agreement is another example of the flexibility and reliability provided by our Gulf Coast hydrogen pipeline network. The value created by the versatility of the pipeline network to be able to shift supply, if necessary, to customer facilities throughout the Gulf Coast was recognized and resulted in our winning this business," said Wilbur Mok, vice president - North America Tonnage Gases at Air Products.

Air Products is working toward enhancing its hydrogen pipeline supply capability in the Gulf Coast to make it the world's largest hydrogen pipeline network. Air Products announced plans to construct a new 180-mile long pipeline in October 2010. The new pipeline extension, which is in the project execution phase, will connect Air Products' Texas hydrogen system to the Louisiana hydrogen system. Once complete, Air Products' hydrogen pipeline supply network will stretch from the Houston Ship Channel in Texas to New Orleans, creating the world's largest hydrogen plant and pipeline supply network. This integrated pipeline system will unite over 20 hydrogen plants and over 600 miles of pipelines. It will supply the Louisiana and Texas refinery and petrochemical industries with over 1.2 billion cubic feet of hydrogen per day. The new Gulf Coast hydrogen pipeline network is expected to be operational in 2012.

Globally, Air Products' hydrogen pipeline operational expertise is evidenced by the 40 year safe operation of its network of systems. Pipelines offer a safe, robust and reliable supply of hydrogen to the refinery and petrochemical industry around the world. In addition to the Gulf Coast hydrogen pipeline system, Air Products also has hydrogen pipeline networks operating around the world in the U.S. in Southern California; in Canada in Sarnia, Ontario, and Edmonton, Alberta; and in The Netherlands in Rotterdam.

Hydrogen is widely used in petroleum refining processes to remove impurities found in crude oil such as sulfur, olefins and aromatics to meet the product fuels specifications. Removing these components allows gasoline and diesel to burn cleaner and thus makes hydrogen a critical component in the production of cleaner fuels needed by modern, efficient internal combustion engines.

About Air Products

Air Products (NYSE:APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. In fiscal 2010, Air Products had revenues of $9 billion, operations in over 40 countries, and 18,300 employees around the globe. For more information, visit www.airproducts.com.

***NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company's Form 10K for its fiscal year ended September 30, 2010.

SOURCE Air Products